U.s. Must Reject Cafta

Foreign Affairs - My WORD

April 25, 2005|By Eric Rubin

The Florida AFL-CIO, Florida Farm Bureau, Florida Alliance of Retired Americans, Sierra Club, Florida Council of Churches and Florida League of United Latin American Citizens are among the many constituents opposed to the Central American Free Trade Agreement (CAFTA). The diversity of these groups demonstrates the variety of problems associated with this trade agreement.

One common argument CAFTA proponents use (and media often recycle) is that free trade will spread freedom and strengthen democracy to other countries. But what often is missing is any sort of explanation as to how.

How does CAFTA, drafted with no participation from civil society, strengthen freedom and democracy? How does CAFTA, which would allow transnational corporations to sue governments over labor and environmental laws in closed-door trade courts, spread freedom and democracy? How does CAFTA -- which does nothing to address partner countries' failures to meet international standards on freedom of association, the right to organize and bargain collectively -- spread freedom and democracy?

The Latin American Council of Churches released a statement to the churches in the United States that addresses these questions:

"This treaty (CAFTA) does not have the minimal conditions of justice, equity and will not benefit our peoples. We beg you to insist to your congressional representatives that they vote against CAFTA."

Free traders also argue that CAFTA would create a multitude of jobs. But NAFTA, which CAFTA was modeled after, tells a different story. According to the U.S. Labor Department, more than 500,000 American workers have lost their jobs due to NAFTA. The Economic Policy Institute, a non-partisan think tank, put the net job loss for Florida at 27,631.

As for agriculture, a huge contributor to Florida's economy, NAFTA's impact was just as bleak. The Department of Agriculture estimates that Florida's share of the U.S. winter market commodities suffered $791 million since NAFTA's inception. More than 15,700 agricultural workers lost their jobs, and more than 1,000 farms disappeared as a result of NAFTA.

Free traders pontificate that CAFTA will help other countries' economies. But Alvaro Fiallos, the president of Nicaragua's Union of Farmers and Ranchers, thinks differently: "If CAFTA were to go into effect today 420,000 Nicaraguan agricultural sector jobs could just disappear, increasing migration to the cities, Costa Rica and the United States," Fiallos said.

CAFTA isn't without benefits. Large transnational corporations that have no alliance to countries, labor or environmental laws or democracy would benefit at the expense of local and national businesses that have a social and moral stake in their communities.

Trade agreements must be based on an open and transparent discussion that brings all those who are affected by these trade agreements to the table as equals. CAFTA does not. This is why we must insist that out government reject CAFTA.